CHARLESTON, SC—Greystar Real Estate Partners said Wednesday it had closed its Greystar Equity Partners VIII LP commingled fund at $800 million. The fund, which will target value-add multifamily acquisitions across the US, drew from global investors ranging from domestic and international pension plans to private wealth managers.
Already, GEP VIII has allocated about $150 million of the $800-million fund, which follows a $600-million predecessor fund. GEP VIII’s initial acquisitions will create a seed portfolio of 10 properties, including one in Los Angeles and a collection of value-add opportunities in markets focused on the energy sector, including Houston and Dallas.
Greystar’s strategy with GEP VIII is to identify multifamily properties that will complement its operations platform, already the largest in the nation. As GlobeSt.com reported this past Thursday, Greystar is making that platform even larger with the acquisition of its biggest competitor in the management space, Dallas-based Riverstone Residential Group, which it acquired from London-based CAS Capital Ltd. The deal expands Greystar’s management portfolio to more than 385,000 units across the US and overseas.
Commenting on the close of GEP VIII, Greystar CEO Bob Faith says the Riverstone acquisition gives his company “even greater depth throughout the major markets in the US, which will further enhance our ability to identify and execute on attractive investment opportunities for our investors.” Last year, the company was the largest private acquirer of apartments globally, and not all in the multifamily sector. Since this past October, it has acquired more than 8,000 student housing units in the UK.